Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 61 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Retained earnings, December 31 Sales 20Y2 20Y1 $3,368,900 $2,850,800 728,000 583,900 (9,800) (9,800) (56,000) (56,000) $4,031,100 $3,368,900 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations 20Y2 20Y1 $4,232,540 $3,899,650 1,608,920 1,480,210 $2,623,620 $2,419,440 $836,400 712,490 $1,032,010 606,100 $1,548,890 $1,638,110 $1,074,730 $781,330 Other revenue and expense: Other revenue 56,570 49,870 Other expense (interest) (304,000) (167,200) Income before income tax expense $827,300 $664,000 Income tax expense 99,300 80,100 Net income $728,000 $583,900